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DECREE

Providing for the Regime of compulsory insurance for Civil Liability of those who deal in the transport of passengers or flammable or explosive cargoes in inland waterways

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 15, 2004 Law on Inland Waterway Navigation;

Pursuant to the December 9, 2000 Law on Insurance Business;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Decree provides for the regime of compulsory insurance for civil liability of those who deal in the transport of passengers or flammable or explosive cargoes in inland waterways.

Article 2.- Subjects of application

1. Organizations and individuals that deal in the transport of passengers or flammable or explosive cargoes in inland waterways (hereinafter referred collectively to as "inland waterway transport dealers").

2. Insurance enterprises permitted to deal in compulsory insurance for civil liability of inland waterway transport dealers.

Article 3.- Interpretation of terms

1. "Inland waterways" mean channels, locks, or constructions to help vessels pass river dams or falls, canals, ditches or channels on lakes, marshes, lagoons, bays or gulfs along the coastline, leading to islands or linking islands within the internal waters of the Socialist Republic of Vietnam, which are managed and exploited for transport.

2. "Transport dealers" mean organizations or individuals dealing in transport and entering into cargo or passenger transport contracts with transport hirers in order to carry out the transport of cargoes or passengers for freights or charges.

3. "Passengers" means people who are carried onboard inland waterway means of transport under passenger transport contracts defined in Article 81 of the Law on Inland Waterway Navigation.

4. "Flammable or explosive cargoes" mean goods of classes from 1 to 4 according to the provisions of Article 4 and Appendix 1 to the Government's Decree No. 29/2005/ND-CP of March 10, 2005, stipulating the lists of dangerous goods and the transport thereof in inland waterways.

5. Insurance buyers mean inland waterway transport dealers.

Article 4.- Principles for participating in compulsory insurance for civil liability of inland waterway transport dealers

1. Subjects defined in Clause 1, Article 2 of this Decree shall have to participate in compulsory insurance for civil liability of inland waterway transport dealers.

2. The State encourages agencies, organizations and individuals other than subjects defined in Clause 1, Article 2 of this Decree to voluntarily participate in compulsory insurance for civil liability of inland waterway transport dealers.

Article 5.- Insurance enterprises permitted to provide compulsory insurance for civil liability of inland waterway transport dealers

All insurance enterprises that have been permitted to provide insurance for ship hull and ship owners' civil liability may provide compulsory insurance for civil liability of inland waterway transport dealers.

Chapter II

CONTENTS OF THE REGIME OF COMPULSORY INSURANCE FOR CIVIL LIABILITY OF INLAND WATERWAY TRANSPORT DEALERS

Article 6.- The regime of compulsory insurance for civil liability of inland waterway transport dealers

1. Insurance for the liability to pay compensations for damage caused to third parties by flammable or explosive cargo transport dealers.

2. Insurance for the liability to pay compensations for damage caused to passengers by passenger transport dealers according to passenger transport contracts.

Article 7.- Implementation of the regime of compulsory insurance for civil liability of inland waterway transport dealers

1. Inland waterway transport dealers and insurance enterprises shall implement the regime of compulsory insurance for civil liability of inland waterway transport dealers specified in this Decree by entering into insurance policies under insurance rules, terms and premium tariffs issued by the Ministry of Finance.

2. Certificates of insurance shall be the proof of entry into policies of compulsory insurance for civil liability between inland waterway transport dealers and insurance enterprises.

Article 8.- Rights of inland waterway transport dealers

1. To choose any insurance enterprise permitted to provide compulsory insurance for civil liability of inland waterway transport dealers in Vietnam for the insurance.

2. To request insurance enterprises to explain about and provide information relating to the entry into, performance and termination of insurance policies.

3. To request insurance enterprises to pay indemnities quickly, fully and satisfactorily as agreed upon in the insurance policies.

4. To account the premiums of compulsory insurance for civil liability of inland waterway transport dealers as service costs.

5. Other rights according to the provisions of law.

Article 9.- Responsibilities of inland waterway transport dealers

1. To buy compulsory insurance for civil liability of inland waterway transport dealers according to the provisions of this Decree.

2. To produce valid certificates of compulsory insurance for civil liability of inland waterway transport dealers at the request of competent agencies.

3. To abide by regulations on conditions for dealing in the transport of flammable or explosive cargoes or the transport of passengers in inland waterways.

4. To cooperate with insurance enterprises in the course of performing the insurance polices.

5. To apply measures for protecting and ensuring the safety of transported passengers and flammable or explosive cargoes.

6. To fulfill responsibilities specified in the policies of compulsory insurance for civil liability of inland waterway transport dealers.

7. To promptly notify insurance enterprises of elements that cause changes in the degree of insured risks.

8. Other responsibilities according to the provisions of law.

Article 10.- Rights of insurance enterprises

1. To refuse to sell compulsory insurance for civil liability of inland waterway transport dealers to insurance buyers that fail to meet the conditions for dealing in inland waterway transport provided for by law.

2. To collect insurance premiums as stipulated in the policies of compulsory insurance for civil liability of inland waterway transport dealers.

3. To refuse to pay indemnities for cases falling beyond the insurance liability.

4. To propose supplements or amendments to rules, terms and premium tariffs for compulsory insurance for civil liability of inland waterway transport dealers to make them suit practical business activities.

5. Other rights according to the provisions of law.

Article 11.- Responsibilities of insurance enterprises

1. To sell compulsory insurance for civil liability of inland waterway transport dealers to insurance buyers that fully meet the conditions for dealing in inland waterway transport as provided for by law.

2. To pay indemnities fully and quickly as agreed upon in the policies of insurance and according to relevant legal documents.

3. To abide by rules, terms, premium tariffs and commission percentages for compulsory insurance for civil liability of inland waterway transport dealers according to current regulations.

4. To fully explain to insurance buyers about information on benefits and obligations of insurance buyers and insurance enterprises.

5. To supply insurance buyers with rules, terms and premium tariffs for compulsory insurance for civil liability of inland waterway transport dealers and issue certificates of compulsory insurance for civil liability of inland waterway transport dealers with full contents as prescribed by law.

6. To be subject to examination and supervision by competent state agencies in providing compulsory insurance for civil liability of inland waterway transport dealers.

7. To carry out regular and intensive propagation and dissemination of information on compulsory insurance for civil liability of inland waterway transport dealers.

8. To coordinate with functional agencies in the course of implementing the regime of compulsory insurance for civil liability of inland waterway transport dealers.

9. To report to the Ministry of Finance on the results of dealing in compulsory insurance for civil liability of inland waterway transport dealers on a periodical basis or upon request.

10. Other obligations according to the provisions of laws.

Chapter III

RESPONSIBILITIES OF STATE AGENCIES FOR THE IMPLEMENTATION OF THE REGIME OF COMPULSORY INSURANCE FOR CIVIL LIABILITY OF INLAND WATERWAY TRANSPORT DEALERS

Article 12.- Responsibilities of the Ministry of Finance

1. To promulgate regulations on insurance conditions, insurance premiums and the minimum insurance sum (hereinafter referred collectively to as insurance rules, terms and premium tariffs) for the regime of compulsory insurance for civil liability specified in Article 6, this Decree.

2. To inspect and guide enterprises to implement the regime of compulsory insurance for civil liability of inland waterway transport dealers.

3. To handle insurance enterprises which violate the regime of compulsory insurance for civil liability of inland waterway transport dealers according to the provisions of law.

Article 13.- Responsibilities of the Ministry of Transport

1. To coordinate with functional agencies and localities in inspecting, supervising and urging the satisfaction of conditions on dealing in inland waterway transport by organizations and individuals required to buy compulsory insurance for civil liability of inland waterway transport dealers according to the provisions of this Decree.

2. To coordinate with functional agencies in inspecting and handling organizations and individuals required to buy compulsory insurance for civil liability of inland waterway transport dealers but fail to buy insurance.

3. To coordinate with functional agencies in analyzing the causes of traffic accidents in inland waterways and handling such accidents so as to help insurance enterprises well implement the regime of compulsory insurance for civil liability of inland waterway transport dealers.

4. To coordinate with functional agencies in applying measures to prevent and minimize losses caused by inland waterway navigation accidents in strict accordance with the Law on Inland Waterway Navigation.

5. To mobilize organizations, individuals and inland waterway transport dealers to buy insurance according to this Decree and guiding documents.

Article 14.- Responsibilities of the Ministry of Public Security

1. To assume the prime responsibility for, and coordinate with the Ministry of Transport and localities in, organizing and directing the work of monitoring and inspecting the observance by owners of means of transport of the regime of compulsory insurance for civil liability of inland waterway transport dealers.

2. To handle organizations and individuals that violate the regime of compulsory insurance for civil liability of inland waterway transport dealers.

3. To investigate into traffic accidents occurring in inland waterways and supply to insurance enterprises necessary documentation for determining faults and responsibilities of involved parties and results of investigation to enable the payment of indemnities in a quick, satisfactory and lawful manner.

Article 15.- Responsibilities of concerned ministries, ministerial-level agencies and Government-attached agencies

Ministries, ministerial-level agencies and Government-attached agencies shall, within the scope of their tasks and powers, have to inspect, guide and effect compulsory insurance for civil liability for inland waterway transport dealers according to the provisions of this Decree.

Article 16.- Responsibilities of provincial/municipal People's Committees

1. To organize the propagation and dissemination of this Decree among organizations, individuals and inland waterway transport dealers in their localities.

2. To coordinate with the Ministry of Finance, the Ministry of Transport and the Ministry of Public Security in applying measures to prevent and minimize damage caused by inland waterway transport activities.

3. To create conditions for insurance enterprises to remedy consequences caused by inland waterway transport dealers in a quick, satisfactory and lawful manner so as to soon stabilize economic and social life for damaged organizations or individuals.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 17.- Implementation guidance

The Ministers of Finance; Transport; and Public Security, and presidents of provincial/municipal People's Committees shall, within the ambit of their respective functions and tasks, have to guide and organize the implementation of this Decree.

Article 18.- Implementation effect and responsibilities

1. This Decree takes effect 15 days after its publication in "CONG BAO."

2. Ministers, heads of ministerial-level agencies and Government-attached agencies, and presidents of provincial/municipal People's Committees shall have to implement this Decree.